concept & Nature of

Management
What is Management ???

• The process of using what you

have { RESOURCES }, to do what
you want to do …. {GOALS}
7 categories
Resources {Assets}
of resources:
Money
People
Time
Work Procedures
Materials
Equipment
Energy
 Goals
1. Maximum Profit Levels
2. Maintenance or growth of financial strength
3. Quality standards
4. Professional obligations
5. Societal concerns—Social Responsibility of
Business
Management is a multi-purpose organ that
manages business, managers, workers &
work
 MANAGEMENT

• “Management is the art of getting things done

through and with people in formally organized
groups.”
• -
Koontz
• “Management is process involving planning,
organizing, staffing, directing, and controlling
human efforts to achieve stated objectives in
an organization.”
•“Management is simply the process of decision-
making and control over the actions of human
beings for the expressed purpose of attaining pre-
determined goals” -Stanley Vance
 WHAT IS MANAGEMENT PROCESS?
• Methodology of getting things done

• Series of actions or operations

• Functions performed and sequence of

performance
• Planning, Organizing, Actuating and Controlling
 MANAGEMENT
Process of Organized Activities
For achievement of enterprise goals, management plans,
organizes co-ordinates, directs and controls group efforts

Existence of Objectives
Without objectives, it becomes difficult to define the direction
where organized group activities would lead to
Relationship Among Resources

Resources include (5 M’s of management) MEN,

MATERIAL, MONEY, MACHINES, METHODS

All these resources are made available to managers who

apply their knowledge, experience and principles for
getting the desired results
Working with and through People
Working with people and getting organizational objectives
achieved through them

Decision-making
Involves selecting the most appropriate alternative solution
out of the several alternatives available
 DELEGATION OF AUTHORITY

• Refers to the entrustment of responsibility

and authority to another
• And creation of accountability for
performance
• Refers to conferring of authority by one
person to another, usually a subordinate
 Power to command and give
orders
RightOFFICIALto give orders or power
PERSONAL
•Which a person enjoys
to command
•Authority of superior
others
because of his popularity,
which he possesses
because of his official good public relations,

position and placement excellent charismatic

in the organizational personality

structure.
 RESPONSIBILITY

• Obligation of a subordinate to perform the duty as

required by the superior
• Refers to such duties and activities which are assigned to
a position or to an executive
• Responsibility cannot be transferred
• When an executive delegates his authority to his
subordinate, he cannot delegate responsibility
• A manager is responsible for the performance of his
duties even though he may delegate his authority to
a subordinate for the performance of the same task
 ACCOUNTABILITY

• Obligation on the part of subordinate to carry out the

responsibility by exercising authority
• Every subordinate is answerable to his superior for
the tasks assigned to him
•14 PRINCIPLES OF
MANAGEMENT

•HENRy FAyOL
•1. DIVISION OF WORK
•Specialization and specification of job

•People need specialization for effective performance

 2. AUTHORITY AND
RESPONSIBILITY
•Balance between Authority and responsibility

•If anyone is assigned any duty he must be vested with

requisite authority to carry out his responsibility.
•Personnel must know what activities they are to undertake
and what results they have to show.
•3. DISCIPLINE
•Without discipline in the organization it is difficult to operate.

•Self- imposed- springs from within the individual

•Command-imposed- through remuneration, warning,

suspension, demotion, etc
•4. UNITY OF COMMAND
•It means an employee should receive orders from one superior
only
5. UNITY OF DIRECTION
•There should be one plan for one unit

•Objective is important
•6. SUBORDINATION OF INDIVIDUAL
INTEREST TO GENERAL INTEREST
•The interest of the group should supersede that of the individual

•Common interest is above individual interest

 7. REMUNERATION OF
PERSONNEL
•Remuneration and methods of payment should
be fair
•Provide maximum satisfaction to the employee
and employer
•8. CENTRALISATION
•Power is concentrated a certain level in the
organization.
•It depends on the nature and size of the organization.
9. SCALOR CHAIN
•Communication can be established through proper channel.

•Scalar chain was a very time consuming process.

•Henri Fayol suggested gang plank policy according to which

there was a provision of lateral communication.
•10. ORDER
•Right person at the right job and right place for material,
machine and stock.
•Meaning right thing in the right place.
 11. EQUITY
•Every manager should be unbiased towards the officials.

•Personal liking and disliking should not be involved.

•12. STABILITY OF TENURE
•Tenure and term of appointment should be stable.

•There should be reasonable security of job.

•
 13. INITIATIVE
•Within the limits of authority and discipline the manager should
encourage their employees to take initiative for establishing
team work in the organization.

•14. ESPRIT DE CORPS

•Union is strength
FUNCTIONS OF
MANAGEMENT

‘PODSCORB’
LUTHER GULLICK
 P –PLANNING
O –ORGANISING
D –DIRECTING
S –STAFFING
CO –COORDINATING
R –REPORTING
B –BUDGETING
The Management process…..
Levels of Management

Non Management Employees

Traits of a manager
Best Traits
Fair/just in decisions
Trusting/trusted at the same time
Caring & analytical in thought
Empowering & capable/responsible
Always punctual
Worst Traits
Deceitful
Dishonest
Shows favouritism
Lazy
Unorganized
 MAIN AND SUBSIDIARY FUNCTIONS
OF MANAGEMENT
MAIN FUNCTIONS SUBSIDIARY
FUNCTIONS
PLANNING COMMUNICATION
ORGANISING DECISION-MAKING
STAFFING INNOVATION
DIRECTION
CO-ORDINATION
MOTIVATION 
CONTROL
 PLANNING
• Planning is deciding in advance what to do, when and
how to do it
• It is the blue-print for future action

• Determination of objectives and goals of the organization

and laying down specific targets
• Planning is deciding in the present what to do in future
 ORGANISING
• It is a structure involving a large number of people
engaging themselves in a multiplicity of tasks
• Systematic and rational relationship with authority and
responsibility between individuals and groups
• It involves dividing the entire work into manageable units—
departmentation, delegation, decentralization, and span of
control
 STAFFING
•The process of recruitment, selection, training &
development, placing, evaluating and developing people
can be called staffing
 DIRECTION

•Making decisions and giving them in the form of orders and

providing effective leadership
 CO-ORDINATION

Inter-relating various activities of the organization

 MOTIVATION

• A psychological technique of executing the plans and

policies through the efforts of others.
• It is through motivation that the manager inspires the
subordinates to do what he wants them to do.
 CONTROL
• Controlling function brings to light the deviations, and
assists management to correcting those deviations.
• It involves the process of visualizing whether the activities
have been or are being performed in the same way as
contained in the plans, because any deviations will result in
inefficiency in the organization.
 COMMUNICATION
• The exchange of facts, ideas, opinions or emotions by two or
more persons is known as communication
• Constant communication with personnel helps management to
remain informed of their problems, difficulties and grievances
 DECISION MAKING
• The Selection from Among Alternatives of a Course of
Action
• “Management means Decision-making”—Moore
 INNOVATION
• Relates to research and development

• All big business houses have started research and

development departments to keep pace with modern
technique and up-to-date demand
 •IS
MANAGEMENT
AN ART OR
SCIENCE ?